Ballast Practice Exam - Question 117

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    Abegail

    This is purely based on my understanding so feel free to correct me if I'm wrong.

    The $162,500 already included all the overhead fees so the $30,000 is for the direct labor of the employees.

    If there are 5 employees to share the $30,000 then each employee will get $6000 each.

    $6000/ 50 an hour will give you 120 hours to do the project.

    Since they only do 30 hours/week for this project then 120/30 is 4 weeks.

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    Anna Slowey (Edited )

    That makes sense...I think what was throwing me off is that the number provided doesn't appear to explicitly cover general overhead (including indirect expenses of office lease, benefits, etc)....but that is what is probably covered in "profit for allowance". Thanks!

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